EverCommerce Inc. (NASDAQ:EVCM) Q2 2023 Earnings Call Transcript

We’re happy about the expansion of take rate over the last 18 months. I think we talked about this last quarter. There is a variety of things that we do from pricing and packaging. Some of it is, frankly, just mix of our payment space as well as we are driving more and more attachment and utilization in some of our higher take rate solutions, specifically in home services, we have seen take rate expansion just in aggregate go up. But obviously, from our end, we have opportunities to, A, just grow the expanse of payment capabilities within our integrated systems of action allows us to continue to obviously add more value to the end customer, but also commensurate price to value from that perspective. And then lastly, we continue to have opportunities with our end providers for — as we continue to scale, creating scale and the economic relationship from a take rate standpoint in those contractual arrangements.

Jeremy Sahler: Got it. That’s useful color. The rest of mine were asked. Thanks for taking my questions.

Operator: The next question comes from Dan Bergstrom with RBC Capital. Your line is open.

Dan Bergstrom: It’s Dan Bergstrom for Matt. Thanks for taking our questions. Ever Health, it’s been a couple of quarters now with the rebrand. I know we’re early in a long process here, but anything to point out around initial customer reception to the changes? Is it accelerating customer adoption?

Eric Remer: It’s been extremely positive. The Ever Health brand has kind of been soft launched as kind of an overhead brand for the kind of our health group within the organization, it will be really officially launched really in Q1, end of Q1 of next year as we’re going to really go to market really with one brand. And consolidate all the other branding parts of it. And I think we’ll start seeing even more efficiencies both in the operations and even hopefully an increased upsell on the selling part of it as well. To date, the response has been very positive. We’ve been selling these solutions again, under one organization. So we’re going to make a very simple upsell, cross-sell, full-service suite solutions to our customers, which they genuinely appreciate versus in to connect the dots themselves and other partners where they have gain point solutions versus one whole solution.

So the Early feedback is positive. We’ve seen consistent growth in that category. I think when we launch it fully next year, I think it will be an uptick of fully in growth, but definitely in minimum and operational efficacy and efficiency that we’ll get in the organization. Matt, do you want to add?

Matt Feierstein: Yes. I think it played out the way we had expected it to. From an external standpoint to Eric’s point, the reception has been really, really positive. And from an internal standpoint and ultimately to a customer-facing standpoint, it really has set us up for that multiproduct sales. So think about EMRPM as the base system of action, but having those active integrations for integrated insurance clearinghouse and claims integrated patient pay and now integrated customer patient engagement solutions really becoming more active in those EMRPMs. It is exactly what our customers want. They don’t want multiple. They don’t want multiple providers and us being able to drive that to market more and more and more over time. Again, that’s part of the receptivity that we’ve gotten from our end customers. So excited about where we are. And to Eric’s point, there’s a lot more progress to come over the next year.

Dan Bergstrom: That’s great. Appreciate the color. Thanks.

Operator: [Operator Instructions] The next question comes from Eamonn Coghlan [ph] with Barclays. Your line is open.

Unidentified Analyst: This is Eamonn Coghlan [ph] on for Ryan MacWilliams from Barclays. Can you just broadly describe how SMB has fared in 2Q? And what management is factoring in for ’23 guidance in terms of macro? Thanks.